AIG Life Insurance Company
Variable Account I
PROSPECTUS SUPPLEMENT
DATED OCTOBER 8, 1998
Supplement to the Prospectus for Variable Annuity Contracts issued by Variable
Account I and AIG Life Insurance Company dated July 4, 1998 and amended July 21,
1998.
This Supplement amends the headings indicated, as follows:
CHARGES AND DEDUCTIONS
The section entitled Deduction for Enhanced Equity Assurance Plan is
deleted.
ANNUITY BENEFITS
The last sentence of the section entitled Annuity Options is deleted and
replaced with: "The Company may also offer additional options including, but not
limited to, other guarantee periods and options without life contingencies.
DEATH BENEFIT
The section entitled Prior to the Annuity Date is amended to read: "In the
event of an Owner's death (or the death of the first joint owner to die) prior
to the Annuity Date, a death benefit is payable to the Beneficiary. The value of
the death benefit will be determined as of the date We receive proof of death in
a form acceptable to Us. If there has been a change of Owner from one natural
person to another natural person, the death benefit will equal the Contract
Value unless the change in ownership results from the election made by a
surviving spouse as designated beneficiary to continue the Contract. Otherwise,
the death benefit will be calculated in accordance with the terms of one or more
of the options described below, as designated by the Owner at the time of
application. The amount of the Death Benefit to be paid will depend upon the
option selected, but will never be less than the Traditional Death Benefit. In
the event that the Owner had selected both the Annual Ratchet Plan and the
Equity Assurance Plan, the Death Benefit to be paid will be the greatest of the
Traditional Death Benefit, the Annual Ratchet Plan or the Equity Assurance Plan.
The Accidental Death Benefit, if applicable, will be paid in addition to any
other benefit. All death benefit options may not be available in all states."
In the section entitled Annual Ratchet Plan, item 1 of the first paragraph
is amended to read: "the total of all Premium paid, reduced proportionally by
any surrenders in the same proportion that the Contract Value was reduced on the
date of a surrender; or"
The section entitled Enhanced Equity Assurance Plan Option is deleted.
